To amend title 38, United States Code, to improve educational assistance for veterans who served in the Armed Forces after September 11, 2001, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1.Short title.

This Act may be cited as the “Post-9/11 Veterans Educational Assistance Improvements Act of 2010”.

SEC. 2.Modification of entitlement to educational assistance.

(a) Modification of definitions that concern eligibility for educational assistance.—

(1) MODIFICATION OF DEFINITION OF ACTIVE DUTY WITH RESPECT TO MEMBERS OF RESERVE COMPONENTS GENERALLY.—Paragraph (1)(B) of section 3301 of title 38, United States Code, is amended by striking “of title 10.” and inserting the following: “of title 10—

“(i) for the purpose of organizing, administering, recruiting, instructing, or training the reserve components of the Armed Forces; or

“(ii) in support of a contingency operation (as defined in section 101(a) of title 10).”.

(2) EXPANSION OF DEFINITION OF ACTIVE DUTY TO INCLUDE SERVICE IN NATIONAL GUARD FOR CERTAIN PURPOSES.—Paragraph (1) of such section is amended by adding at the end the following new subparagraph:

“(C) In the case of a member of the Army National Guard of the United States or Air National Guard of the United States, in addition to service described in subparagraph (B), full-time service—

“(i) in the National Guard of a State for the purpose of organizing, administering, recruiting, instructing, or training the National Guard; or

“(ii) in the National Guard under section 502(f) of title 32 when authorized by the President or Secretary of Defense.”.

(3) EXPANSION OF DEFINITION OF ENTRY LEVEL AND SKILL TRAINING TO INCLUDE ONE STATION UNIT TRAINING.—Paragraph (2)(A) of such section is amended by inserting “or One Station Unit Training” before the period at the end.

(b) Clarification of applicability of honorable service requirement for certain discharges and releases from the Armed Forces as basis for entitlement to educational assistance.—Section 3311(c)(4) of such title is amended in the matter preceding subparagraph (A) by striking “A discharge or release from active duty in the Armed Forces” and inserting “A discharge or release from active duty in the Armed Forces after service on active duty in the Armed Forces characterized by the Secretary concerned as honorable service”.

(c) Exclusion of period of service on active duty of periods of service in connection with attendance at the Coast Guard Academy.—Section 3311(d)(2) of such title is amended by inserting “or section 182 of title 14” before the period at the end.

SEC. 3.Modification of amount of assistance and types of approved programs of education.

(a) Amount of educational assistance for programs of education pursued on at least a half-Time basis.—Section 3313 of title 38, United States Code, is amended—

(1) in subsection (c)—

(A) by striking the subsection heading and inserting the following: “Programs of education at institutions of higher learning pursued on at least a half-Time basis.—”;

(B) in the matter preceding paragraph (1) by inserting “at an institution of higher learning (as defined in section 3452(f) of this title)” after “program of education”; and

(C) in paragraph (1), by amending subparagraph (A) to read as follows:

“(A) An amount equal to—

“(i) in the case that such institution is a public institution of higher learning, the established charges for the program of education; and

“(ii) in the case that such institution is a non-public or foreign institution of higher learning, the lesser of—

“(I) the established charges for the program of education; or

“(II) $20,000 for each academic year.”; and

(2) by redesignating subsection (h) as subsection (i); and

(3) by adding at the end the following new subsection:

“(h) Annual increase in certain amounts.—

“(1) IN GENERAL.—On August 1 of each year, the Secretary shall provide an increase in the amount in effect under subsection (c)(1)(A)(ii)(II) equal to the percentage by which—

“(A) the average cost of undergraduate tuition in the United States, as determined by the National Center for Education Statistics, for the last academic year preceding the beginning of the fiscal year for which the increase is made, exceeds

“(B) the average cost of undergraduate tuition in the United States, as so determined, for the academic year preceding the academic year described in subparagraph (A).

“(2) APPLICABILITY.—Any increase under paragraph (1) shall only apply to academic terms beginning on or after the date on which the increase is made and shall be rounded to the nearest whole dollar amount.”.

(b) Amount of educational assistance for programs of education pursued on less than a half-Time basis.—Subsection (f) of section 3313 of title 38, United States Code, is amended—

(1) by striking the subsection heading and inserting the following: “Programs of education at institutions of higher learning pursued on less than a half-Time basis.—”;

(2) in paragraph (1), by striking “on half-time basis or less” and inserting “on less than a half-time basis”;

(3) in paragraph (2), by striking “on half-time basis or less” and inserting “on less than a half-time basis”; and

(4) in paragraph (3), by striking “on half-time basis or less” and inserting “on less than a half-time basis”.

(c) Modification of amount of monthly stipends, including stipends for part-Time study, distance learning, and pursuit of programs of education at foreign institutions of higher learning.—Subparagraph (B) of section 3313(c)(1) of such title is amended—

(1) by redesignating clause (ii) as clause (iv); and

(2) by striking clause (i) and inserting the following new clauses:

“(i) Except as provided in clauses (ii) and (iii), for each month the individual pursues the program of education, a monthly housing stipend amount equal to the product of—

“(I) the monthly amount of the basic allowance for housing payable under section 403 of title 37 for a member with dependents in pay grade E–5 residing in the military housing area that encompasses all or the majority portion of the ZIP code area in which is located the institution of higher learning at which the individual is enrolled, multiplied by

“(II) in the case of an individual enrolled in a program of education—

“(aa) on a full-time basis, 100 percent;

“(bb) on a three-quarter-time basis, 75 percent; or

“(cc) on a half-time basis, 50 percent.

“(ii) In the case of an individual pursuing a program of education at a foreign institution of higher learning, for each month the individual pursues the program of education, a monthly housing stipend amount equal to the product of—

“(I) the national average of the monthly amount of the basic allowance for housing payable under section 403 of title 37 for a member with dependents in pay grade E–5, multiplied by

“(II) in the case of an individual enrolled in a program of education—

“(aa) on a full-time basis, 100 percent;

“(bb) on a three-quarter-time basis, 75 percent; or

“(cc) on a half-time basis, 50 percent.

“(iii) In the case of an individual pursuing a program of education through distance learning on a half-time basis or more, a monthly housing stipend amount in an amount equal to the monthly amount of the basic allowance for housing payable under section 403 of title 37 for a member with dependents in pay grade E-5 residing in the military housing area that encompasses all or the majority portion of the ZIP code area in which the individual resides.”.

(d) Educational assistance for approved programs of education at institutions other than institutions of higher learning.—

(1) APPROVED PROGRAMS OF EDUCATION AT INSTITUTIONS OTHER THAN INSTITUTIONS OF HIGHER LEARNING.—Subsection (b) of section 3313 of such title is amended to read as follows:

“(b) Approved programs of education.—For purposes of this chapter, a program of education is an approved program of education for purposes of this chapter if the program of education is approved for purposes of chapter 30 of this title (including approval by the State approving agency concerned) and—

“(1) is offered by an institution offering postsecondary level academic instruction that leads to an associate or higher degree and such institution is an institution of higher learning (as that term is defined in section 3452(f) of this title); or

“(2) is offered by an institution offering instruction that does not lead to an associate or higher degree and such institution is an educational institution (as that term is defined in section 3452(c) of this title).”.

(2) ASSISTANCE FOR PURSUIT OF PROGRAMS OF EDUCATION AT INSTITUTIONS OTHER THAN INSTITUTIONS OF HIGHER LEARNING.—Such section is further amended—

(A) by redesignating subsections (g), (h) (as added by subsection (c)), and (i) (as redesignated by as subsection(c)) as subsections (h), (i), and (j) respectively; and

(B) by inserting after subsection (f) the following new subsection (g):

“(g) Programs of education pursued at institutions other than institutions of higher learning.—

“(1) IN GENERAL.—Educational assistance is payable under this chapter for pursuit of an approved program of education at an institution other than an institution of higher learning.

“(2) AMOUNT OF ASSISTANCE.—The amounts of educational assistance payable under this chapter to each individual entitled to educational assistance under this chapter who is pursuing an approved program of education at an institution other than an institution of higher learning (as defined in section 3452(f) of this title) are amounts as follows:

“(A) In the case of an individual enrolled in a program of education consisting of on-job training or a program of apprenticeship, a stipend for each month the individual pursues the program, as follows:

“(i) For the first six-month period of the program, an amount equal to the monthly amount of the basic allowance for housing payable under section 403 of title 37 for a member with dependents in pay grade E–5 residing in the military housing area that encompasses all or the majority portion of the ZIP code area in which the employer is located.

“(ii) For the second six-month period of the program, an amount equal to 80 percent of such amount.

“(iii) For the third six-month period of the program, an amount equal to 60 percent of such amount.

“(iv) For any month after the first 18 months of such program, an amount equal to 40 percent of such amount.

“(B) In the case of an individual enrolled in a program of education consisting of flight training, an amount equal to the lesser of—

“(i) the established charges for the program of education; or

“(ii) 60 percent of the amount in effect under section 3313(c)(1)(A)(ii)(II) of this title.

“(C) In the case of an individual enrolled in a program of education that is pursued exclusively by correspondence, an amount equal to the lesser of—

“(i) the established charges for the program of education; or

“(ii) 55 percent of the amount in effect under section 3313(c)(1)(A)(ii)(II) of this title.

“(3) CHARGE AGAINST ENTITLEMENT.—The entitlement of an individual to educational assistance under this chapter shall be charged at the rate of one month for each month of assistance provided under this subsection.”.

(3) CONFORMING AMENDMENT.—Subsection (i) of such section 3313, as redesignated by paragraph (2) of this subsection, is amended by striking “(e)(2), and (f)(2)(A)” and inserting “subsections (e)(2) and (f)(2)(A), and subparagraphs (A)(i), (B), and (C), of subsection (g)(2)”.

(e) Programs of education pursued on active duty.—

(1) IN GENERAL.—Subsection (e)(2) of such section is amended—

(A) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;

(B) in the matter preceding clause (i), as redesignated by subparagraph (A)—

(i) by striking “The amount” and inserting “The amounts”; and

(ii) by striking “is the lesser of—” and inserting “are the amounts as follows:

“(A) An amount equal to the lesser of—”; and

(C) by adding at the end the following new subparagraph (B):

“(B) For the first month of each quarter, semester, or term, as applicable, of the program of education pursued by the individual, a lump sum amount for books, supplies, equipment, and other educational costs with respect to such quarter, semester, or term in the amount equal to—

“(i) $1,000, multiplied by

“(ii) the fraction which is the portion of a complete academic year under the program of education that such quarter, semester, or term constitutes.”.

(2) TECHNICAL AMENDMENT.—Clause (ii) of subsection (e)(2)(A) of such section, as redesignated by paragraph (1)(A) of this subsection, is amended by adding a period at the end.

SEC. 4.Modification of assistance for licensure and certification tests.

(a) Repeal of limitation on number of reimbursable tests.—Subsection (a) of section 3315 of title 38, United States Code, is amended by striking “one licensing or certification test” and inserting “licensing or certification tests”.

(b) Charge of entitlement for receipt of assistance.—Such section is further amended by striking subsection (c) and inserting the following new subsection (c):

“(c) Charge against entitlement.—The charge against entitlement of an individual under this chapter for payment for a licensing or certification test under subsection (a) shall be charged for any amount of more than $2,000 at the rate of one month for each amount equal to the national average of the monthly amount of the basic allowance for housing payable under section 403 of title 37 for a member with dependents in pay grade E–5.”.

(a) In general.—Section 3316 of title 38, United States Code, is amended—

(1) by redesignating subsection (c) as subsection (e); and

(2) by inserting after subsection (b) the following new subsection (c):

“(c) Transfer of supplemental educational assistance.—

“(1) IN GENERAL.—An individual entitled to supplemental educational assistance under subchapter III of chapter 30 of this title may transfer such entitlement to entitlement for supplemental educational assistance under this section. Such individual shall receive entitlement to one month of supplemental educational assistance under this section for each month of entitlement to supplemental educational assistance so transferred.

“(2) RATE.—The monthly rate of supplemental educational assistance payable to an individual who transfers entitlement under paragraph (1) shall be payable at the same rate as such entitlement would otherwise be payable to such individual under subchapter III of chapter 30 of this title.

“(3) NATURE OF TRANSFERRED ENTITLEMENT.—An amount of supplemental educational assistance transferred under paragraph (1) shall be payable as an increase in the monthly amount of educational assistance otherwise payable to the individual under paragraph (1)(B) of section 3313(c) of this title, or under paragraphs (2) through (7) of such section 3313(c) (as applicable).”.

(b) Clarification on reimbursement of increased or supplemental assistance.—Such section is further amended by inserting after subsection (c), as added by subsection (a)(2) of this section, the following new subsection (d):

“(d) Reimbursement.—Any expense incurred by the Secretary for the provision of increased assistance or supplemental assistance to an individual under this section shall be reimbursed by the Secretary concerned.”.

SEC. 6.Limitations on receipt of educational assistance under National Call to Service and other programs of educational assistance.

(a) Bar to duplication of educational assistance benefits.—Section 3322(a) of title 38, United States Code, is amended by inserting “or section 510” after “or 1607”.

(b) Limitation on concurrent receipt of educational assistance.—Section 3681(b)(2) of such title is amended by inserting “and section 510” after “and 107”.

SEC. 7.Increase in amount of reporting fee.

Section 3684(c) of title 38, United States Code, is amended—

(1) by striking “multiplying $7” and inserting “multiplying $21”; and

(2) by striking “or $11” and inserting “or $25”.

SEC. 8.Amount of subsistence allowance for veterans with service-connected disabilities.

Section 3108(b) of title 38, United States Code, is amended by adding at the end the following new paragraph:

“(4) A veteran entitled to subsistence allowance under this chapter and educational assistance under chapter 33 of this title may elect to receive payment from the Secretary in lieu of an amount otherwise determined by the Secretary under this subsection in an amount equal to the national average of the monthly amount of basic allowance for housing payable under section 403 of title 37 for a member with dependents in pay grade E–5.”.

SEC. 9.Public-private contributions for additional educational assistance extended to National Guard and Reservists.

Section 3317(a) of title 38, United States Code, is amended by striking the last sentence.

SEC. 10.Reauthorization of Veterans’ Advisory Committee on Education.

Section 3692(c) of title 38, United States Code, is amended by striking “December 31, 2009” and inserting “December 31, 2016”.

SEC. 11.Modification to Montgomery G.I. Bill cost of living adjustments.

(a) In general.—Section 3015 of title 38, United States Code, is amended—

(1) by striking subsection (h);

(2) in subsection (a)(1), by striking “rate of—” and all that follows through “; or” and inserting “rate of $1368; or”; and

(3) in subsection (b)(1), by striking “rate of—” and all that follows through “; or” and inserting “rate of $1111; or”.

(b) Effective date.—The amendments made by subsection (a) shall take effect on the date of the enactment of this Act.

SEC. 12.Effective date.

Sections 1 through 10 of this Act shall take effect on August 1, 2011.